Prices for Italian rolled metal collapsed

The Italian slab market is "... paralyzed" and is affected by low demand, uncertainty and falling prices on the domestic market. Domestic board prices are down € 40 /t ($ 45.9 /t) compared to early January. However, there is a large gap between the price of the distribution sector and the prices of the factories.

Production is currently € 520-530 per ton from a base quality manufacturer. Although it was at the level of 560-570 euros per ton from the plant three weeks ago. However, distributors still manage to reach a selling price of € 580-590 per tonne when sold to end users.

Apparent demand is lower than real demand because end users are reluctant to build up stocks and buy only those materials for which they already have commitments. They accept offers from distributors up to € 40 /ton more than mills because distributors have a wide range of products. This allows end users to purchase over-the-counter and avoid stockpiling in the face of market uncertainty.

Therefore, the Italian market is characterized by a heterogeneous demand. Slab prices, which are now $ 400 /t on a FOB basis. Depending on further movement in this area, the current domestic plate price will decline in February.

Meanwhile, domestic coil prices are also declining. This is the same as the National Institute of Statistics (Istat) says that technically Italy is in a recession. This is due to the country's second consecutive quarterly GDP contraction in the fourth quarter of 2018.